LUBOK ANTU: Sarawak needs to look into its existing laws to ensure that palm oil waste can be efficiently and sustainably utilised for downstream industries.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said that the matter will be discussed by the state government together with the Food Industry, Commodities, and Regional Development Minister, Datuk Seri Dr Stephen Rundi Utom, and the State Attorney-General.
“We need to look into our laws, because if waste is managed in scattered small groups, there is no economy of scale. Some may not want to give up their waste.
“So we need to consider making it mandatory, through a joint venture between the private sector and the government, to set up an entity that collects all waste from the 85 oil palm mills,” he said.
He said this in his speech at the launching of the new Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) Kernel Crushing Plant here today.
Abang Johari emphasised that waste volume is critical to achieving efficiency in downstream production, including the generation of biofuel, livestock feed, and even hydrogen fuel – all by-products of the palm oil industry.
“We need volume as with volume comes efficiency. Then we can sustainably produce the outputs I mentioned earlier.
“Only then can we create a green agricultural sector – non-polluting and well-managed.
“This will benefit all mills. If one place produces two tonnes, another three tonnes, it’s not enough.
“But if we combine them, it can reach 100 tonnes, which is an efficient volume to produce the desired outputs,” he said.
He highlighted Sarawak’s commitment to a circular economy, where waste is repurposed into valuable products to support sustainable agriculture in line with global Environmental, Social, and Governance (ESG) standards, enabling Sarawak to earn premium prices for green products.
Abang Johari said that while Sarawak currently produces crude palm oil, mill effluent can be further processed into components of sustainable aviation fuel (SAF).
He cited Neste in Singapore, which turns used cooking oil into aviation fuel, as proof of waste’s revenue potential.
“Sarawak, meanwhile, uses raw materials directly from our plantations. That’s pure income going straight to our planters,” he said.
He revealed that RM30 million in seed funding was allocated for a model project at SALCRA to showcase how downstream activities can benefit smallholders.
Palm oil planters, he said, will also venture into livestock farming using palm waste as feed, creating dual income streams to boost rural livelihoods.
